Mayor Rob Ford’s $1 billion savings claim ‘misleading,’ staff say

Mayor Rob Ford is proclaiming that newly released numbers from city staff support his $1 billion savings claim — even as top staff call that claim “misleading.”

After a media briefing Monday, city manager Joe Pennachetti now says the amount of money saved during Ford’s four-year term is $893 million — not $1 billion or even $972 million as staff previously reported.

Pennachetti said the mayor can claim he reduced spending more than other mayors. For example, former mayor David Miller saved $545 million in spending, meaning Ford saved nearly $350 million more than Miller. But Ford’s claim that he has saved taxpayers $1 billion over four years is not correct, Pennachetti said.

“In terms of budget savings being a billion dollars, that is misleading compared to previous administrations,” Pennachetti said.

In a statement sent Monday night, Ford claimed the new document further showed the “success” of his administration “in saving money for the taxpayers of Toronto.”

Then he put the cost-savings number at $1.1 billion —contrary to what Pennachetti and chief financial officer Rob Rossini had earlier said.

How exactly Ford or staff arrived at their totals remains unclear, while other cost-saving claims went unaddressed by both Pennachetti and Ford on Monday.

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For example, Ford claims he “saved” $200 million over four years when the vehicle registration tax — at $60 per car owner — was eliminated.

But the city now categorizes that item under “revenue growth” — and puts the number at just $46 million over four years.

What’s also not clear are some items considered “efficiencies” and whether they can really count as cost-saving measures.

Ford says the city has found $606 million in “efficiencies” over four years.

One of the things counted as an efficiency is the $21-million budget increase requested by Toronto Police in 2013. That increase was never approved by city council and had no real impact on taxpayers.

A month ago, finance staff said the amount Ford saved over four years was $972 million, but they have since removed from the calculation $30 million in user fees and $44.8 million in contracted garbage collection savings.

In his release, Ford continues to claim the number is closer to $940 million and then claims that when the vehicle registration tax is included the savings are pushed to more than $1 billion.

The mayor’s campaign website, RobFordForMayor.ca still features a button claiming “billion-dollar savings,” which links to the now-outdated city staff document that put the number at $972 million.

Ford did not stop to speak to reporters on Monday, but as he walked back into his office he claimed he had saved “over a billion dollars.”

Staff said the Ford-Miller comparison is valid because similar budgeting methods were used and the result is an apples-to-applies comparison.

Miller’s administration did hike property taxes more than Ford, said Rossini, the city’s chief financial officer.

Under Miller, residential property taxes went up an average of 3.6 per cent annually over the four-year period. Under Ford, the residential increase has averaged 1.7 per cent over the four years.

However, pointed out Councillor Gord Perks, a Ford critic: “You pay more now in taxes than when Rob Ford was elected mayor.

“You can say your taxes have gone up under Rob Ford. You cannot say your taxes have gone down under either administration. It’s just not true.”

Ford also has had more land-transfer tax revenues to count on, finance staff said. Currently, about $350 million a year comes in from the tax, versus $170 million under Miller — whose administration had the benefit of one-time provincial funding.

In his statement, Ford said the “Miller administration was heavily reliant on one-time provincial funding,” and called that “not a responsible way to run a business.”

Ford campaigned against the land transfer tax in 2010 and after being elected has said he would like to eliminate or at least reduce the tax. It remains in place, and finance staff said the money is needed to balance the budget.

Councillor Shelley Carroll said Ford has gone too far with some cost-saving measures, after he vowed four years ago to cut the “gravy” at City Hall.

“Most citizens would agree their services are fraying around the edges now, because he did go too far just to prove a point,” Carroll said.